According to 4E monitoring, the three major U.S. stock indexes hit new highs on Monday last week, but then continued to soften, and on Friday, the sharp reduction in rate cut expectations put pressure on U.S. stocks across the board, with the S&P 500 index falling 2% in the past five trading days, erasing half of its gains since the election, the Dow fell 1.24% this week, and the Nasdaq fell 3.15% this week, the biggest weekly decline since September.
Bitcoin broke through $93,000 to hit a new high on Wednesday, but has started to consolidate amid the stock market pullback, though it has shown resilience, currently fluctuating narrowly around the $90,000 mark, closing at $90,799 prior to the release, up nearly 12% in 7 days. Other Altcoins have followed Bitcoin's volatility, with SOL continuing to benefit from the meme frenzy, showing strong rebound and upward momentum.
In the foreign exchange and commodity markets, the easing of Fed rate cut expectations has led to a sustained strengthening of the U.S. dollar, which hit a more than one-year high last week, with the U.S. dollar index rising 1.6% and extending its gains for seven consecutive weeks. The strong U.S. dollar has continued to put pressure on all commodities, with spot gold falling about 4.6% last week, the biggest weekly decline in three years, down nearly 9.3% from its all-time high, U.S. oil down nearly 5%, and Brent oil down nearly 4%.
The current market focus is on inflation concerns and a more hawkish outlook for the Federal Reserve following the Trump administration's inauguration. Powell's speech on Thursday basically said that Federal Reserve officials do not need to rush to cut rates, causing traders to sharply reduce their rate cut expectations. The decline in sentiment, the uncertainty in monetary policy, has increased the resistance to the market's upward movement. eeee.com is a financial trading platform that supports cryptocurrencies, stock indexes, bulk gold, foreign exchange and other assets, and has recently launched a USDT stablecoin wealth management product with an annualized yield of 5.5%, providing investors with a potential hedging option. 4E reminds you to pay attention to market volatility risks and allocate assets reasonably.
